UNIVERSITY OF SUNDERLAND
AND
MANAGEMENT DEVELOPMENT INSTITUTE OF SINGAPORE
_______________________________________________________________
Course : Bachelor of Arts (Hons) Business and Management (TopUp) BAMD5 2208A_BAMD5 2209A
Module : UGB 253 Management Accounting for Business
MDIS Module Tutor : Mr. Lim Kaim Soon
Assessment : Individual Assignment
Due Date : 11 November 2022
Duration / Word Length : 3,000 words +/- 10%
Please refer to AQH-F15 Guidance for Students on
the Penalty for Exceeding the Limit for Assessed
Work.
Weighting within Module : 100%
_____________________________________________________________________
Assignment Submission
Students are required to submit their Turnitin© originality report coursework through JIRA.
Only assessments submitted through JIRA will be marked. Any other submission including
submission to your study centre in hard copy will be treated as a non-submission.
PLAGIARISM/INFRINGEMENT STATEMENT
All Assessments are subject to the University’s Policy on ‘Cheating, Collusion and
Plagiarism’. Students found guilty of this are subject to severe penalties.
This is an INDIVIDUAL piece of work – If there is evidence that the work is not wholly
attributable to you, the University’s policy on ‘Cheating, Collusion and Plagiarism’ will
be applied
Link to University Academic Integrity and Misconduct Policy
• https://docushare.sunderland.ac.uk/docushare/dsweb/View/Collection-8155
REQUIREMENTS
Students must answer all questions within the assessment.
The assignment has been designed to cover the following learning outcomes associated with
successful completion of the module:
Knowledge
1. Investigate a range of key management accounting models and concepts.
2. An understanding of specific analytical skills in key areas within management
accounting found in the UK and international level.
3. Compare and contrast of the role and scope of management accounting theory.
Skills
4. Analysis the key management accounting concepts and techniques in order to
contribute to successful decision making in an organisation.
Learning outcomes:
The assignment covers all module learning outcomes.
Students should approach this assignment as an academic essay, weighing the arguments for
and against each issue, making comment on the literature and drawing logical conclusions.
Academic referencing using the Harvard referencing approach is a key requirement of the
assignment to demonstrate wider reading and to underpin the discussions, ensuring they have
relevant depth. Students are encouraged to be inquisitive and innovative in their approach as
to what should be included in this report.
Assignment brief: Answer all three questions
Question 1
“The conventional cost accounting systems are often unable to identify correctly the true
costs of processes. Consequently, management and quality professionals are unable to make
sound decisions or make decisions based on the misrepresented data.” – Ashford C. Chea
(2011)
a) Demonstrate and discuss the theoretical criticism of the conventional cost
accounting system.
b) Discuss the alternative costing system that could substitute the conventional cost
accounting system.
c) Outline the practical problems that may be encountered in implementing each
technique in any industry and comment on how they may be overcome.
This should be approximately 1,400 words.
In this section students should demonstrate both knowledge and understanding of the costing
approaches within theoretical viewpoints. The response should attempt to incorporate a
critical perspective through relevant academic referencing, rather than overly describing the
model. The evaluation should be supported with appropriate empirical research that has been
performed within this area and should be referenced as per Harvard referencing requirements.
The response should also demonstrate an ability to incorporate real-life practical business.
(Total 40 Marks)
Question 2
“Performance measurement includes the objective and subjective assessments of the
performance of both individuals and subunits of an organization such as divisions or
departments. Performance evaluation is the process of attaching value weights to various
measures of performance to represent the importance of achievement on each dimension.” –
Michael C. Jensen, William H. Meckling.
Critically evaluate the above statement. In your work, you should provide theoretical
viewpoints and empirical findings with respect to the performance measurement covering
the following points:
a) the performance measurement and evaluation system,
b) the performance measurement and strategic information management, and
c) the linkage between the performance measurement system and the budget
implementation
This should be approximately 1,400 words.
In this section students should demonstrate both knowledge and understanding of the
performance measurement theoretical viewpoints. The response should attempt to incorporate
a critical perspective through relevant academic referencing, rather than overly describing the
model. The evaluation should be supported with appropriate empirical research that has been
performed within this area and should be referenced as per Harvard referencing requirements.
The response should also demonstrate an ability to incorporate real-life practical business
examples, addressing whether similar companies implement effective and appropriate
performance measurement system.
(Total 40 Marks)
Question 3
(a)
Alpha Limited in producing and selling plastic pen cases. The average selling price is $12 per
unit. The production units is a mixed cost. Please refer to the past monthly data below.
Month Units Total Cost
1 2,500 $22,000
2 1,800 $21,000
3 2,400 $23,000
4 1,800 $19,000
5 1,100 $15,000
6 1,300 $14,200
a) Calculate the variable cost per unit.
b) Calculate the fixed cost.
c) If the company produces 1,900 units in month 7, what would be the projected total
cost?
d) Find the breakeven quantity.
e) The company plans to produce and sell 2,000 units in month 8. If the target profit is
$10,000, find the revised selling price.
(1 mark each, total 5 marks)
(b)
It is now Quarter 2 of 2022.
Yamada Limited is the business of manufacturing and selling plastic storage containers.
Currently, all sales are generated locally through its show room in the Great World Shopping
Centre.
Locally, this business is very competitive, with 12 companies selling similar products.
Therefore, it is expected that the revenue growth will be slow in the coming years.
The company is preparing 2023 annual budget. The following information is provided to help
you, the budget planner, to prepare an annual budget for 2021 for the company:
1. The marketing and sales department manager provides the following sales forecasts:
2022 2023 2023 2023 2023 2024 2024
Q4 Q1 Q2 Q3 Q4 Q1 Q2
Expected sales,
units
1,000 1,100 1,130 1,160 1,200 1,220 1,250
Unit selling price 162 172 175 175 180 180 180
2. It is projected that:
60 percent of a quarter’s sales are collected in the quarter of sales.
35 percent of a quarter’s sales are collected in the following quarter.
5 percent are uncollectible.
3. Production budget stipulates that the finished goods’ desired ending inventory for the
quarter will be 5 percent of next quarter’s sales.
4. Each unit produced requires 2 kg of materials at a cost of $12 per kg.
5. Desired ending inventory of materials will be 10 percent of next quarter’s materials needed
for production.
6. Purchases are paid according to the following schedule:
40 percent of a quarter’s purchases are paid for in the quarter of purchase
60 percent of a quarter’s purchases are paid for in the following quarter.
The outstanding accounts payable as at the end of 2020 shall be $9,000.
7. Direct labour is projected at 8 direct labour hours per unit at $8 per hour.
All direct labour costs are paid for in the quarter incurred.
8. The factory overhead budget information are as follows:
Variable overhead budget is projected at $5 per direct labour hour.
Fixed factory overhead budget is at $2,500 per month.
All overhead costs are paid for in the quarter incurred.
9. The company plans to launch a marketing campaign to promote new products.
The projected marketing expenses incurred and paid in the quarter 3 is $50,000.
10. The selling and administration costs incurred and paid are as follows:
2023 Q1 12,000
2023 Q2 15,000
2023 Q3 20,000
2023 Q4 25,000
11. The company plans to invest $60,000 each in quarter 2 and 3 for new equipment.
This investment budget is to comply with the environmental regulations.
12. The opening cash balance for Quarter 1 is $25,000.
13. The target minimum monthly ending cash balance is $25,000.
In order to achieve this cash balance level, the firm has an overdraft facility with the
DBS Bank, offering a line of credit facility of $100,000 at 5% interest per quarter on
outstanding balance. Interest is payable in the following quarter when incurred.
Required:
Write a report to Mr Jeremy Tan, the chief executive officer, of the following:
(i)
Prepare the following quarterly budget for 2023:
1. Revenue budget and sales collection budget (3 marks)
2. Production, material usage and payment budget (3 marks)
3. Factory overhead budget and direct labour budget (3 marks)
4. Cash flow budget (3 marks)
(12 marks)
(ii)
Do you think the budgets prepared in (a) will be approved by the management? State your
reasons clearly.
(Maximum 200 words, 3 marks)
(Total 20 marks)
Your assignment should aim to provide readers with comprehensive knowledge and critical
reviews of these areas covering, for example:
• Knowledge of variety of topic related to management accounting within the
concept of decision making by managers.
• Knowledge of the role and scope of management accounting theory and
identifying the costs and benefit that is relevant to a particular decision within the
business.
• Any other important issues which you think should be addressed
Further details:
Students should approach this assignment as an academic essay, weighing the arguments for
and against each issue, making comment on the literature and drawing logical conclusions.
Referencing should form part of the assignment to demonstrate wider reading and to underpin
the discussions, ensuring they have depth.
Students are encouraged to be inquisitive and innovative in their approach as to what should
be included in this report. The following may be of some use in providing guidance as to
what could possibly be included, although this is in no way meant to be prescriptive.
The aim of the assignment is to help you understand the key areas of management accounting
using extracts, examples and approaches to management accounting. This will include
investigating topics from throughout the course linked to the above issues. Some of the
principles, concepts and models will be more relevant to your chosen approach than others
and so it is likely that different students will formulate different approaches to the problems.
This is normal, it is not expected that all of the course content will be used in the analysis,
concentrate on that which you feel is most important.
As part of your work you might find it helpful to briefly explore the underlying theory behind
the key areas of investigation that you identify before applying them to report.
With a total of 3,000 words you do not have a lot of room for long introductions so assume
you are writing to a sophisticated audience who has a working knowledge of management
accounting and is well versed in business theory.
Please avoid relying too heavily on descriptive sections reproducing information available
from course material or the set text. Further research and the use of current or recent media
announcements are encouraged to further examples and add strength to the management
accounting.
FORMAT GUIDE:
• All text should be in a clear font such as Arial or Times New Roman;
• All text should be 12-point except for headings.
• Text should be in a single column and left-aligned;
• 1.0 or 1.5 spacing between lines, including appendices and bibliography, but
excluding quotations, footnotes or captions, which may be single-spaced.
• References: Harvard
Marking Guide:
Marks will be awarded with respect to the following assessment criteria.
Undergraduate Assessment Criteria
08/5/5.5
These should be interpreted according to the level at which you are working
Categories
Grade Relevance Knowledge Analysis Argument and Structure Critical Evaluation Presentation Reference to Literature
Pass
86 –
100%
The work examined is exemplary and provides clear evidence of a complete grasp of the knowledge, understanding and skills appropriate to the Level of the
qualification. There is also unequivocal evidence showing that all the learning outcomes and responsibilities appropriate to that Level are fully satisfied. At this level it is
expected that the work will be exemplary in all the categories cited above. It will demonstrate a particularly compelling evaluation, originality, and elegance of argument,
interpretation or discourse.
76-85% The work examined is excellent and demonstrates comprehensive knowledge, understanding and skills appropriate to the Level of the qualification. There is also
excellent evidence showing that all the learning outcomes and responsibilities appropriate to that level are fully satisfied. At this level it is expected that the work will be
excellent in the majority of the categories cited above or by demonstrating particularly compelling evaluation and elegance of argument, interpretation or discourse.
70 – 75%
The work examined is of a high standard and there is evidence of comprehensive knowledge, understanding and skills appropriate to the Level of the qualification. There
is clearly articulated evidence demonstrating that all the learning outcomes and responsibilities appropriate to that level are satisfied At this level it is expected that the
standard of the work will be high in the majority of the categories cited above or by demonstrating particularly compelling evaluation and elegance of argument,
interpretation or discourse.
60 – 69%
Directly relevant
to the
requirements of
the assessment
A substantial
knowledge of
relevant material,
showing a clear
grasp of themes,
questions and
issues therein
Good analysis,
clear and orderly,
with consistent
links from
analysis to
solutions of
problems in a
work context.
Generally coherent and
logically structured, using
an appropriate mode of
argument and/or
theoretical mode(s)
May contain some
distinctive or
independent thinking;
may begin to
formulate an
independent position
in relation to theory
and the application of
practice in a work
context.
Well written, with
standard spelling
and grammar, in a
readable style with
acceptable format
Critical appraisal of up-todate and/or appropriate
literature. Recognition of
different perspectives.
Very good use of source
material. Uses a range of
sources
50 – 59%
Some attempt to
address the
requirements of
the assessment:
may drift away
from this in less
focused passages
Adequate
knowledge of a fair
range of relevant
material, with
intermittent
evidence of an
appreciation of its
significance
Some analytical
treatment, but
may be prone to
description, or to
narrative, which
lacks clear
analytical
purpose, and
which does not
consistently link
analysis to
solutions of
Some attempt to
construct a coherent
argument, but may suffer
loss of focus and
consistency, with issues at
stake stated only vaguely,
or theoretical mode(s)
couched in simplistic
terms
Sound work which
expresses a coherent
position and
evaluates
appropriateness of
approaches to
problem-solving in a
work context only in
broad terms and in
uncritical conformity
to one or more
Competently
written, with only
minor lapses from
standard grammar,
with acceptable
format
Uses a variety of literature
which includes some
recent texts and/or
appropriate literature,
though not necessarily
including a substantive
amount beyond library
texts. Competent use of
source material.
problems in a
work-based
context.
standard views of the
topic
40 – 49% Some correlation
with the
requirements of
the assessment
but there are
instances of
irrelevance
Basic
understanding of
the subject but
addressing a
limited range of
material
Largely
descriptive or
narrative, with
little evidence of
analysis which
links to solutions
of problems in a
work-based
context.
A basic argument is
evident, but mainly
supported by assertion
and there may be a lack
of clarity and coherence
Some evidence of a
view and a very basic
evaluation of the
appropriateness of
approaches to
problem-solving in a
work context starting
to be formed but
mainly derivative.
A simple basic style
but with significant
deficiencies in
expression or
format that may
pose obstacles for
the reader
Some up-to-date and/or
appropriate literature
used. Goes beyond the
material tutor has
provided. Limited use of
sources to support a
point.
Fail
35 – 39% Relevance to the
requirements of
the assessment
may be very
intermittent, and
may be reduced to
its vaguest and
least challenging
terms
A limited
understanding of a
narrow range of
material
Heavy
dependence on
description,
and/or on
paraphrase, is
common, poor
evidence of
linking analysis
to proposed
solutions of
problems in a
work-based
context.
Little evidence of
coherent argument: lacks
development and may be
repetitive or thin
Almost wholly
derivative: the
writer’s contribution
rarely goes beyond
simplifying
paraphrase and does
not adequately
evaluate the
appropriateness of
different approaches
to solving problems in
a work context.
Numerous
deficiencies in
expression and
presentation; the
writer may achieve
clarity (if at all) only
by using a simplistic
or repetitious style
Barely adequate use of
literature. Over reliance
on material provided by
the tutor.
The evidence provided shows that the majority of the learning outcomes and responsibilities appropriate to that Level are satisfied – For Compensation consideration.
30 – 34% The work examined provides insufficient evidence of the knowledge, understanding and skills appropriate to the Level of the qualification. The evidence provided shows
that some of the learning outcomes and responsibilities appropriate to that Level are satisfied. The work will be weak in some of the indicators.
15-29% The work examined is unacceptable and provides little evidence of the knowledge, understanding and skills appropriate to the Level of the qualification. The evidence
shows that few of the learning outcomes and responsibilities appropriate to that Level are satisfied. The work will be weak in several of the indicators.
0-14% The work examined is unacceptable and provides almost no evidence of the knowledge, understanding and skills appropriate to the Level of the qualification. The
evidence fails to show that any of the learning outcomes and responsibilities appropriate to that Level are satisfied. The work will be weak in the majority or all of the
indicators.
